Global auto sales are in the midst of the first sustained slowdown since the 2008 financial crisis, as a result of volatile international trade policy, rising commodity prices, declining demand and tariffs
US index futures rose higher into record territory, as European stocks pared muted gains after the EURUSD rose above 1.17, pressuring exporters, while Asian shares were broadly higher, but the main theme of the session was another day of USD weakness.
"Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that - and everybody’s talking!"
Following notably disappointing Eurozone PMIs (specifically France and Germany) hitting 18-month lows, US PMIs printed better than expected, sending the US Composite back near its highest since Nov 2015.
With Walmart unofficially set to close Q1 earnings season, all attention will remain glued on the interplay of the rates-dollar-oil trio, and judging by the somber overnight market action, traders are not too excited with the ongoing meltup in all three.
While the general risk-on rally across global markets persisted for a third day amid sliding volatility, the rally appears to have lost some steam with Dow futures lagging after last night's disappointing IBM revenues, which in turn may have capped the S&P ramp that started on Monday.